ACC - Q3FY13 Preview - HDFC Securities

ACC's cement dispatches in 4QCY12 are likely to marginally rise by 1-2% y-o-y but witness a fall q-o-q. However, average realisations could improve by 5-7% y-o-y. The company has been consistently putting in efforts to rationalise costs through pruning coal, power usage and more use of alternative fuels.

Sales could prop up by 5% y-o-y. Variable costs for ACC are expected to remain under control with no increase q-o-q. EBITDA growth is forecast to accelerate to 14 per cent as higher cement prices improve operating leverage.

EBITDA margin could shrink q-o-q impacted by lower realisations and higher costs though freight cost/t could decline qo- q largely due to non-levy of the busy season surcharge on rail freight in the monsoon quarter.

Source : Equity Bulls

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